Transition from offline retail to online retail

Given that the retail industry fell under the influence of new pandemic triggered regulations what meant the closure of physical stores, that means retailers were forced to change focus on

online selling platforms and adapt to changing circumstances. Due to technological developments, the retail industry is also undergoing changes. During the past decade, e-commerce channels were able to outperform traditional retail channels (Izogo & Jayawardhena, Online shopping experience in an emerging e-retailing market, 2017). From the year 2015 till 2019 E-commerce share of total global retail sales increased from 7.4% to 14.1% and is expected to grow (Statista, 2020). Such a result and forecast gradually leads to crowding out traditional retail sales. Considering the emerging development of online shopping, there are a lot of reasons for retailers to move their shop from only bricks and mortar concept to online retail shopping. First of all, it allows the use of another channel for selling products and consequently increases profit and revenue. The online store does not limit the business to one geographical area but creates an opportunity to reach customers worldwide, which is a quite significant advantage compared to physical stores. Awareness is another reason to expand to online retail. For example, it was investigated that social media activities play a significant role in generating brand awareness (Bilgin, 2018). The online store acts like an all-time advertisement for the store. Eventually, it is a necessary tool to be able to compete in the retail market since technological development shows its effect on increasing e-commerce sales (Belew & Elad, 2020).

Figure 2: E-commerce share of total global retail sales from 2015 to 2023

Source: Statista (2020)

Nevertheless, from the user perspective, there are aspects that push away customers from doing online shopping and vice versa that motivate them to do so. One of the main motivating aspects is the fact that it helps to save time. While shopping at the physical store, customers try to save time in the following way: tend to shop at the closest shop to their living

place, buy food in large quantity in order not to visit shop many times or basically shop during times when there is not huge traffic inside the shop (Alreck & Settle, 2002). For customers, the main point is not just saving time but to do as many as possible activities within a short period of time, which is possible with online shopping. Because by doing shopping via online stores, they can perform other activities simultaneously (Alreck, et al., 2009). Along with that, doing shopping online, consumers are able to compare the price of the same product offered in various online stores, and within a considerably short period of time find the option with the lowest possible price in comparison with time spent if they would visit each store to check the price.

However, many people use online retail channels only as a source of information. Consumers compare prices, certain criteria and then proceed with the purchase in traditional retail stores.

On the other hand, there are the reasons that are the factors that demotivate from fully switching to online shopping. Users perceive online stores as risky because, in their opinion, it may be risky to use the online payment method. Even though online retailers use quite strong security systems, customers often fall victim to cyber-attacks (Pickup, 2017). In the year 2020 in the US there were reported approximately a quarter of a million cases of cyber-attacks only by means of phishing and other similar ways with the intention to gather such information as passwords, credit card numbers and etc. (IC3, & FBI, 2021). The delivery service level also plays quite a significant role in consumer behaviour toward online shopping. For example, improved end-user delivery helps reduce negative evaluations of delivery services, and the diversity of end-user delivery channels gives end users more flexibility and alternatives.

Electronic shoppers can collect packages flexibly and do not need to wait at home at a certain time; otherwise, this negatively affects the desire to shop through online stores (Xiao, Wang, &

Liu, 2017).

Also, customers have a doubt that the delivered product will have lower quality or will not be the same as it is illustrated and described on the website. This is especially true for food products; for example, when buying vegetables and fruits, the buyer prefers to buy the product by checking its maturity, colour, freshness, and other qualities that cannot be checked on the Internet. The same can be attributed to meat or fish products, an online store, for example, does not provide an opportunity to choose a specific piece of meat or check the fish for freshness (Forbes, 2011). Especially quality of the product or service is one of the factors that influences the penetration of the online shopping method (Tarhini, Alalwan, Al-Qirim, Algharabat, &

Masa’deh, 2018).

As for the quality of electronic service, when the electronic service quality is at a high level, it generates customer satisfaction and trust. What, in its turn, leads to the increased repurchase intention (Rita, Oliveira, & Farisa, 2019). The level of customer satisfaction and repurchase intention is a result of the electronic service quality (Suhaily & Soelasih, 2017). The results of the research also show that consumer behaviour towards online shopping may be the result of a lifestyle. People who spend little time at home prefer to buy the products at physical stores rather than make a purchase via the Internet (Kima, Parka, & Lee, 2017). Moreover, for many people, shopping is not just the process of buying necessary goods, but it is also a social experience. Either the person is single or has a family, shopping is a way to socialize, and this is an experience that online shopping is not able to properly fulfil (Forbes, 2011).

Delivery fee is another aspect that is considered as a demotivator toward the online purchase; in order to not to pay for the delivery, customers prefer not to use the online stores (Kima, Parka, & Lee, 2017). Even though one of the main motivations of customers to do online shopping is to save time, they are more sensitive to delivery fees rather than to time spend travel to the physical shop (Huang & Oppewal, 2006).